Disaggregation of Revenue |
The following tables disaggregate revenue sources for the three months ended March 31, 2018: | | | | | | For the Three Months Ended March 31, 2018 | | (in millions) | Southern Company | | Operating revenues | | Retail electric revenues(a) | | Residential | $ | 1,539 |
| Commercial | 1,243 |
| Industrial | 756 |
| Other | 30 |
| Natural gas distribution revenues | 1,224 |
| Alternative revenue programs(b) | (24 | ) | Total retail electric and gas distribution revenues | $ | 4,768 |
| Wholesale energy revenues(c)(d) | 468 |
| Wholesale capacity revenues(d) | 151 |
| Other natural gas revenues(e) | 407 |
| Other revenues(f) | 578 |
| Total operating revenues | $ | 6,372 |
|
| | (a) | Retail electric revenues include $18 million of leases and a net increase of $117 million from certain cost recovery mechanisms that are not accounted for as revenue under ASC 606. See Note 3 to the financial statements of Southern Company under "Regulatory Matters" in Item 8 of the Form 10-K for additional information on cost recovery mechanisms. |
| | (b) | See Note 1 to the financial statements of Southern Company under "Revenues" in Item 8 of the Form 10-K for additional information on alternative revenue programs at the natural gas distribution utilities. Alternative revenue program revenues are presented net of any previously recognized program amounts billed to customers during the same accounting period. |
| | (c) | Wholesale energy revenues include $93 million of revenues accounted for as derivatives, primarily related to revenues from short-term sales related to physical energy sales from uncovered capacity in the wholesale electricity market. See Note (I) for additional information on energy-related derivative contracts. |
| | (d) | Wholesale energy and wholesale capacity revenues include $69 million and $30 million, respectively, of PPA contracts accounted for as leases. |
| | (e) | Other natural gas revenues related to Southern Company Gas' energy and risk management activities are presented net of the related costs of those activities and include gross third-party revenues of $1.9 billion, of which $1.1 billion relates to contracts that are accounted for as derivatives. See Note (L) under "Southern Company Gas" for additional information on the components of wholesale gas services operating revenues. |
| | (f) | Other revenues include $90 million of revenues not accounted for under ASC 606. |
| | | | | | | | | | | | | | | For the Three Months Ended March 31, 2018 | | Alabama Power | Georgia Power | Gulf Power | Mississippi Power | | (in millions) | Operating revenues | | | | | Retail revenues(a)(b) | | | | | Residential | $ | 570 |
| $ | 744 |
| $ | 165 |
| $ | 60 |
| Commercial | 371 |
| 717 |
| 92 |
| 62 |
| Industrial | 338 |
| 316 |
| 32 |
| 70 |
| Other | 6 |
| 21 |
| 1 |
| 2 |
| Total retail electric revenues | $ | 1,285 |
| $ | 1,798 |
| $ | 290 |
| $ | 194 |
| Wholesale energy revenues(c) | 101 |
| 40 |
| 35 |
| 93 |
| Wholesale capacity revenues | 24 |
| 14 |
| 6 |
| 4 |
| Other revenues(b)(d) | 63 |
| 109 |
| 17 |
| 11 |
| Total operating revenues | $ | 1,473 |
| $ | 1,961 |
| $ | 348 |
| $ | 302 |
|
| | (a) | Retail revenues at Alabama Power, Georgia Power, Gulf Power, and Mississippi Power include a net increase or (net reduction) of $47 million, $10 million, $(16) million, and $76 million, respectively, related to certain cost recovery mechanisms that are not accounted for as revenue under ASC 606. See Note 3 to the financial statements of Alabama Power, Georgia Power, Gulf Power, and Mississippi Power under "Retail Regulatory Matters" in Item 8 of the Form 10-K for additional information on cost recovery mechanisms. |
| | (b) | Retail revenues and other revenues at Georgia Power include $18 million and $33 million, respectively, of revenues accounted for as leases. |
| | (c) | Wholesale energy revenues at Alabama Power, Georgia Power, Gulf Power, and Mississippi Power include $5 million, $7 million, $1 million, and $1 million, respectively, accounted for as derivatives primarily related to physical energy sales in the forward and spot markets. See Note (I) for additional information on energy-related derivative contracts. |
| | (d) | Other revenues at Alabama Power, Georgia Power, and Gulf Power include $25 million, $26 million, and $2 million, respectively, of revenues not accounted for under ASC 606. |
| | | | | | For the Three Months Ended March 31, 2018 | | (in millions) | Southern Power | | PPA capacity revenues(a) | $ | 138 |
| PPA energy revenues(a) | 254 |
| Non-PPA revenues(b) | 115 |
| Other revenues | 2 |
| Total operating revenues | $ | 509 |
|
| | (a) | PPA capacity revenues and PPA energy revenues include $47 million and $76 million, respectively, related to PPAs accounted for as leases. See Note 1 to the financial statements of Southern Power under "Revenues" in Item 8 of the Form 10-K for additional information on capacity revenues accounted for as leases. |
| | (b) | Non-PPA revenues include $79 million of revenues from short-term sales related to physical energy sales from uncovered capacity in the wholesale electricity market. See Note 1 to the financial statements of Southern Power under "Revenues" in Item 8 of the Form 10-K and Note (I) for additional information on energy-related derivative contracts. |
| | | | | | For the Three Months Ended March 31, 2018 | | (in millions) | Southern Company Gas | | Operating revenues | | Natural gas distribution revenues | | Residential | $ | 660 |
| Commercial | 192 |
| Transportation | 277 |
| Industrial | 17 |
| Other | 78 |
| Alternative revenue programs(a) | (24 | ) | Total natural gas distribution revenues | $ | 1,200 |
| Gas marketing services(b) | 271 |
| Wholesale gas services(c) | 146 |
| Gas midstream operations | 22 |
| Total operating revenues | $ | 1,639 |
|
| | (a) | See Note 1 to the financial statements of Southern Company Gas under "Revenues" in Item 8 of the Form 10-K for additional information on alternative revenue programs at the natural gas distribution utilities. Alternative revenue program revenues are presented net of any previously recognized program amounts billed to customers during the same accounting period. |
| | (b) | Gas marketing services includes $3 million and $1 million of revenues accounted for as derivatives and leases, respectively. See Note (I) for additional information on energy-related derivative contracts. |
| | (c) | Wholesale gas services revenues are presented net of the related costs associated with its energy trading and risk management activities. Operating revenues, as presented, include gross third-party revenues of $1.9 billion, of which $1.1 billion relates to contracts that are accounted for as derivatives. See Note (L) under "Southern Company Gas" for additional information on the components of wholesale gas services operating revenues and Note (I) for additional information on energy-related derivative contracts. |
|